A R250-million pension and social grants payout tender, thought to benefit the African National Congress and senior officials in the Limpopo government, has been set aside by the Pretoria High Court.
The tender was awarded to Cash Paymaster Services (CPS) in late 2002, with its contract commencing in March 2003.
The tender was initially challenged by two of the losing bidders, Labat African Management Consulting, a company headed by rugby supremo Brian van Rooyen, and Empilweni Payout Services. Only the latter pursued the matter further.
When the challenge began in May last year, the Mail & Guardian reported that the Scorpions were investigating allegations that the tender might have benefited the ANC in Limpopo, as well as former premier Ngoako Ramatlhodi and former provincial treasurer and public works MEC Thaba Mufamadi. The parties are suspected of benefiting through a structure called Baobab Development Trust.
The trust is thought to have received payments of about R70 000 a month from Northern Corporate Investments Holdings (Nicoh). Nicoh was a partner, along with Aplitec, in Cash Paymaster Services.
Now Judge Ferdi Preller has asked that “the decision by the Limpopo Tender Board to award … the contract to [CPS] is hereby reviewed and set aside”.
The judge also set aside a decision to disqualify Empilweni. He further cancelled the contract between the Limpopo Department of Health and Welfare and CPS. Finally, the Limpopo Tender Board, the premier of Limpopo and CPS were ordered to pay Empilweni’s costs.